HCCJ. Conditions for tax deductibility of management and consultancy services

The High Court of Cassation and Justice decided that, in accordance with art. 145 para. 3 a) and para. 8 of the Fiscal Code, and point 48 of the Implementing Rules of Fiscal Code, in order to admit tax deductibility of management and consultancy services or other types of services, and the deductibility of VAT also, it is imposed to present evidence to prove the actual provision of services, but also to link between those services and the expenditure covered by the current activity of the taxpayer. The High Court held that, given the great diversity of the management services, assistance or other services, Romanian law, including the Methodological Norms, do not set an exhaustive list of evidence admissible to prove that the services were actually rendered. In this regard, by pt. 48 of the Rules, are provided as examples some admissible evidence to prove that the services were actually rendered, such as work statements, minutes of receiving reports, papers, feasibility and market studies, but the taxpayer can also produce other evidence according to the specific activity. Regarding the current business relationship with the taxpayer’s expenses, the High Court held that there must be taken into consideration the internal possibilities of the company concerning to which the work can not achieve the standard required by its stockholders. In this case, the High Court held that the applicant justified the realization of services by presenting progress reports showing that services were provided, assessment and staff training services, employment services, temporary employees, installation, repair and maintenance services, advertising and organizing a raffle, national and international transport services for goods, services needed to achieve the object of the company, retail trade of food, beverages and tobacco in chain stores that are managed by it. Therefore, the conditions to qualify for the deduction of costs relating to the purchase of services and value added tax are met, the solution of the first instance being thorough and lawful. (Decision no. 1261 of March 12, 2014 rendered in appeal by The Administrative and Fiscal Department of The High Court of Cassation and Justice, covering partial annulment of the imposing decision)

:: The Source: JURIDICE.ro

Anda-Laura TĂNASE

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